On January 20, 2022, Clayton Company's records revealed the following information:

Inventory July 1, 2021 $ 62,320

Purchases, July 1, 2021 - January 20, 2022 397,200

Sales, July 1, 2021 - January 20, 2022 582,000

Purchases returns 12,100

Purchases discounts taken 7,200

Freight In 4,500

Sales returns 8,400

A fire destroyed the entire inventory on January 20,2022, except for purchases in transit, FOB shippint point of $ 9,000, and goods having a selling price of $ 5,600 that were salvaged from the fire. The salvaged goods had an estimated salvage value of $ 3,100. The average gross profit on net sales in previous periods was 42%.

Compute the cost of inventory lost in the fire. Show all your work